bne IntelliNews – Diesel prices in Turkey are rising again

The price of diesel fuel (Eco Force) at Opet stations on the European side of Istanbul soared to 25.98 Turkish liras (TRY) ($1.43) per liter on August 24, up 258% year on year , compared to 22.36 TRY on August 9, according to data provided by Opet (chart).

During the same period, the price of gasoline was relatively stable. It stood at 21.15 TRY ($1.16) on August 24, up 173% year-on-year, from 20.04 TRY on August 9.

Effective August 26, the price of diesel will increase by an additional TRY 0.87, media reported on August 25.

The record diesel price of TRY 29.94 was recorded between June 16-27. The record high gasoline price of TRY 28.46 was observed on June 13. The annual increase in the price of diesel exceeded 316% and that of gasoline exceeded 269% during price peaks.

Gasoline prices in Turkey are automatically updated based on a formula. The variables are the price of Brent oil, the crack margins (CIF Med), the USD/TRY rate and the special consumption tax (SCT).

As of August 25, Brent was up 43% YoY at $101 (down from the $120 seen in June) while USD/TRY was up 116% YoY at 18.17 .

The diesel crack spread fell to $38 a barrel in July from $54 in June, but remained well above the $12 recorded in February. The gasoline margin, meanwhile, fell to $26 in July from $44 in June, but remained well above the $13 seen in March.

As of August 25, the diesel differential was $57 and the gasoline differential was $17.

The average price of gasoline in the United States rose 23% year-on-year to $3.88 per gallon ($1.02 per liter). A record high of $5.02 was set on June 14.

According to data from the Petroleum Industry Foundation of Turkey (PETDER), gasoline sales in Turkey fell 3% to 3 million cubic meters (m3) in 2020, while diesel sales were flat at 30 million. m3 and autogas (automotive LPG) sales were down 9% y/y at 3mn tonnes.

In 2021, gasoline sales increased by 31% year on year to 4 million m3 (3 million tonnes), while diesel sales increased by 11% year on year to 32 million m3 and the autogas by 7% over one year to 3.1 million m3.

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